Good day! I need your help tutor please answer the question attached below. The answer is already provided, which means that will be your basis if your answers are correct or not.Ps. In your solution, you identify the given and the what is being asked in the problem and I want to see the formula that you used and box your final answer. Don't give me a solution that is made in ms excel, I am not econ major so i'm asking for you to do the manual or the traditional computation.Lastly, don't give me a shortcut solution because i want to learn and study your computation :)Pps. I want you to use the Present Worth Methods (if applicable) 1.Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2018 a customer asked Beloit to quote a pricefor a custom-designed doughnut machine to be delivered by the end of 2018. Once it is purchased, the customer intendsto place the machine in service in January 2019 and will use it four years. The expected annual operating cash flow isestimated to be $140,000. The expected salvage value of the equipment at the end of five years is about 12% of theinitial purchase price. To expect an 18% required rate of return on investment, what is the maximum amount thatshould be spent on purchasing the doughnut machine? Ans. P= $397,456.48

The minimum return on investment expected by the company is known as the required rate of return. It…

Answered: ote a price for a custom-designed…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 14P

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Good day! I need your help tutor please answer the question attached below. The answer is already provided, which means that will be your basis if your answers are correct or not.

Ps. In your solution, you identify the given and the what is being asked in the problem and I want to see the formula that you used and box your final answer. Don't give me a solution that is made in ms excel, I am not econ major so i'm asking for you to do the manual or the traditional computation.Lastly, don't give me a shortcut solution because i want to learn and study your computation :)

Pps. I want you to use the Present Worth Methods (if applicable)

1.Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2018 a customer asked Beloit to quote a price
for a custom-designed doughnut machine to be delivered by the end of 2018. Once it is purchased, the customer intends
to place the machine in service in January 2019 and will use it four years. The expected annual operating cash flow is
estimated to be $140,000. The expected salvage value of the equipment at the end of five years is about 12% of the
initial purchase price. To expect an 18% required rate of return on investment, what is the maximum amount that
should be spent on purchasing the doughnut machine? Ans. P= $397,456.48

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